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Tesla sets up wholly-owned subsidiary in Shanghai

Xinhua | Updated: 2018-05-15 10:03
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A Tesla Model X car is displayed at the Paris auto show, in Paris, Sept 29, 2016. [Photo/VCG]

SHANGHAI - US electric vehicle maker Tesla has set up a wholly-owned subsidiary in Shanghai, the latest effort to penetrate the Chinese market.

Tesla received the business license for its subsidiary from the market regulation bureau of the Pudong New Area on Thursday, according to the National Enterprise Credit Information Publicity System.

The newly-established subsidiary registered capital of 100 million yuan ($15.8 million). The only shareholder is Tesla Motors HK Limited.

The firm's businesses include technology development and transfer in the fields of electric cars, auto parts, batteries, energy storage equipment and photovoltaic products, and wholesale and import and export of such products.

China announced in April that it would scrap share-holding limits for new energy vehicles for foreign investors in 2018. It also pledged to reduce tariffs for imported cars.

Earlier the Shanghai Municipal Commission of Economy and Information Technology said Tesla and the government had maintained good communication and would continue to discuss Tesla's plant in the municipality.

Tesla's global revenue for 2017 grew 67 percent to nearly $12 billion. The Chinese market contributed $2 billion, up 90 percent.

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